Stellantis’ (NYSE:STLA) U.S. subsidiary, FCA US, LLC, witnessed 6% year-over-year growth in vehicle sales during the second quarter. The company benefited from improved inventory levels as supply chain challenges eased during the quarter.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Stellantis is a global automaker that owns some well-known brands, including Chrysler, Fiat, Jeep, and Ram.
STLA’s head of sales in the U.S., Jeff Kommor, said, “We saw increased demand this quarter as market conditions continue to improve and our dealer network makes the necessary adjustments to drive sales growth across our brand portfolios.”
Quarterly Highlights
In the April-June period, the company delivered 434,648 vehicles, compared with 408,521 in the same period last year. This marks a notable turnaround for STLA in U.S. vehicle deliveries after about two years of decline.
Stellantis reported a 3% year-over-year increase in the Ram brand’s sales. Additionally, Ram’s commercial fleet channel witnessed a significant 19% rise in total U.S. sales. the Dodge brand witnessed a remarkable 37% increase in total sales compared to the previous year, whereas sales for the Chrysler brand grew 33%.
Meanwhile, Fiat’s sales witnessed a significant decline of 42%, while Alfa Romeo’s sales were down by 25%. Lastly, sales for the Jeep Brand also fell by 3% in the quarter.
What is STLA Stock’s Price Target?
It is noteworthy that STLA has requested employees to work overtime in its Warren Truck assembly plant and Michigan’s Jefferson North factory to boost production of Jeep SUVs in anticipation of a potential strike in September. The company cited strong demand as the reason for this move, indicating positive prospects for Stellantis’ future.
Overall, STLA stock has a Strong Buy consensus rating on TipRanks. This is based on eight Buy and two Hold recommendations from Wall Street analysts. The average stock price target of $22.86 implies 28.35% upside potential. Shares have gained 33.11% so far in 2023.
Investors looking for the most accurate and profitable analyst for Stellantis could follow UBS analyst Patrick Hummel. Copying the analyst’s trades on this stock and holding each position for one year could result in 82% of your transactions generating a profit, with an average return of 18.24% per trade.
